Steps -
1. Use a gold bar on the furnace. (If you have not yet cut your gem, cut it before doing this step)
2. Once you have used the bar on the furnace, a window will pop up, asking which type of amulet you wish to make. Select the one you wish to make, given that you have the appropriate level.
3. After you have made the amulet, you will receive it in your inventory. Now, to complete the step of amulet making, you will need to string the amulet. This is done by using a ball of wool on the amulet.Level 5 - Gold Amulet
No Gem Needed
800 Exp to make the amulet
500 Exp to string the amuletLevel 20 - Sapphire Amulet
Cut Sapphire
1,100 Exp to make the amulet
500 Exp to string the amuletLevel 27 - Emerald Amulet
Cut Emerald
1,400 Exp to make the amulet
500 Exp to string the amuletLevel 34 - Ruby Amulet
Cut Ruby
1,700 Exp to make the amulet
500 Exp to string the amuletLevel 70 - Diamond Amulet
Cut Diamond
2,000 Exp to make the amulet
500 Exp to string the amuletLevel 55 - Dragonstone Amulet
Cut Dragonstone
2,500 Exp to make the amulet
500 Exp to string the amuletLevel 67 - Onyx Amulet
Cut Onyx
5,000 Exp to make the amulet
500 Exp to string the amulet

*These amulets can be enchanted -

1. Sapphire Amulet to Amulet of Magic
2. Emerald Amulet to Amulet of Defence
3. Ruby Amulet to Amulet of Strength
4. Diamong Amulet to Amulet of Power
5. Dragonstone Amulet to Amulet of Glory[4]
6. Onyx Amulet to Amulet of Fury.

These necklaces can be enchanted -
1. Sapphire Necklace to Games Necklace.
2. Onyx Necklace to Berserker Necklace.

Dragon Hides
You will need the following items -
- Hide [Only Green dragonhide can be bought from craft store - the rest can be bought through the GE or you can get them from killing dragons].
- Money.
- Needle.
- Thread.

Once you have collected all the above items into your inventory, you will need to go to the Crafting Store Salesman. (Located in Edgeville General Store building - east wall). Once you've found the Craft Store Salesman, right-click him to open up the tan-hide interface. Once you have tanned the hides in your inventory, do the following:

1. Use the needle on the dragonhide.
2. Select the d'hide you wish to make.

Moleman wrote:Amulet of Magic: 1x water rune, 1x cosmic rune. You need a Crafting level of 24 and a Magic level of 7 in order to make an Amulet of Magic.Amulet of Defence: 3x air runes, 1x cosmic rune. You need a Crafting level of 31 and a Magic level of 27 in order to make an Amulet of Defence.Amulet of Strength: 5x fire runes, 1x cosmic rune. You need a Crafting level of 50 and a Magic level of 49 in order to make an Amulet of Strength.Amulet of Power: 10x earth runes, 1x cosmic rune.You need a Crafting level of 70 and a Magic level of 57 in order to make an Amulet of Power.Amulet of Glory (4): 15x water runes, 15x earth runes, 1x cosmic rune. You need a Crafting level of 80 and a Magic level of 68 in order to make an Amulet of Glory (4).Amulet of Fury: 20x earth runes, 20x fire runes, 1x cosmic rune. You a Crafting level of 90 and a Magic level of 87 in order to make an Amulet of Fury.

Moleman wrote:Amulet of Magic: 1x water rune, 1x cosmic rune. You need a Crafting level of 24 and a Magic level of 7 in order to make an Amulet of Magic.Amulet of Defence: 3x air runes, 1x cosmic rune. You need a Crafting level of 31 and a Magic level of 27 in order to make an Amulet of Defence.Amulet of Strength: 5x fire runes, 1x cosmic rune. You need a Crafting level of 50 and a Magic level of 49 in order to make an Amulet of Strength.Amulet of Power: 10x earth runes, 1x cosmic rune.You need a Crafting level of 70 and a Magic level of 57 in order to make an Amulet of Power.Amulet of Glory (4): 15x water runes, 15x earth runes, 1x cosmic rune. You need a Crafting level of 80 and a Magic level of 68 in order to make an Amulet of Glory (4).Amulet of Fury: 20x earth runes, 20x fire runes, 1x cosmic rune. You a Crafting level of 90 and a Magic level of 87 in order to make an Amulet of Fury.

Copied from my guide. The orange font is the levels you need.

Oh well, diamond amulet is the thing everyone makes for anchievements, so I'll just leave editing to that.